1
99:59:59,999 --> 99:59:59,999
Speaker Name: Navi Radjou
0:01 - 0:05
Когато растеш в развиваща се страна
като Индия, като мен, ¶
0:06 - 0:11
веднага се научаваш да извличаш повече полза
от ограничените ресурси
0:11 - 0:15
и намираш креативни начини да използваш отново
това, с което вече разполагаш.
0:16 - 0:20
Например Мансук Праджапати,
грънчар от Индия.
0:20 - 0:26
Той създава хладилник,
изцяло направен от глина,
0:26 - 0:28
който не консумира енергия.
0:28 - 0:32
Може да държи плодове и 
зеленчуци свежи с дни.
0:32 - 0:37
Смразяващо изобретение - буквално.
0:37 - 0:41
В Африка, ако батерията на телефона
ви свърши, не се тревожете.
0:41 - 0:44
Ще намерите някои
находчиви търговци,
0:44 - 0:47
които могат да презаредят батерията ви, 
използвайки велосипеди.
0:47 - 0:49
И тъй като сме в Южна Америка,
0:49 - 0:52
нека разгледаме Лима в Перу,
0:52 - 0:54
област с висока влажност,
0:54 - 0:59
където има само по един инч
валежи всяка година.
0:59 - 1:06
Инжинерен колеж в Лима
изобрети голям рекламен билборд,
1:06 - 1:13
който поема влагата от въздуха
и го преобразува в питейна вода,
1:13 - 1:18
предоставяйки над 90 литра
вода всеки ден.
1:18 - 1:20
Перуанците са невероятни.
1:20 - 1:24
Буквално могат да направят
вода от въздуха.
1:24 - 1:26
През последните 7 години, ¶
1:26 - 1:30
съм срещал и изучавал
стотици предприемачи
1:30 - 1:37
в Индия, Китай, Африка и Южна Америкa,
а те продължават да ме изумяват.
1:37 - 1:40
Много от тях не са посещавали училище.
1:40 - 1:44
Не създават неща в големи R&D лаборатории.
1:44 - 1:47
Улицата е лабораторията.
1:47 - 1:49
Защо го правят?
1:49 - 1:53
Защото не разполагат с основните
ресурси, които ние приемаме за даденост,
1:53 - 1:54
като средства и енергия,
1:54 - 1:57
и основни услуги
като здравеопазване и образование
1:57 - 2:01
също са оскъдни в тези области.
2:01 - 2:07
Когато външните ресурси са малко,
трябва да потърсите в себе си
2:07 - 2:11
и да изпозлвате най-сериозния ресурс,
човешката гениалност,
2:11 - 2:18
да използвате тази гениалност, за да откриете хитри начини
да решавате проблеми с ограничени средства.
2:18 - 2:22
В Индия наричаме това Jugaad. ¶
2:22 - 2:24
Jugaad is a Hindi word
2:24 - 2:30
that means an improvised fix,
a clever solution born in adversity.
2:30 - 2:35
Jugaad solutions are not
sophisticated or perfect,
2:35 - 2:38
but they create more value at lower cost.
2:38 - 2:42
For me, the entrepreneurs
who will create Jugaad solutions
2:42 - 2:44
are like alchemists.
2:44 - 2:48
They can magically transform
adversity into opportunity,
2:48 - 2:53
and turn something of less value
into something of high value.
2:53 - 3:00
In other words, they mastered the art
of doing more with less,
3:00 - 3:05
which is the essence of frugal innovation.
3:05 - 3:11
Frugal innovation is the ability 
to create more economic and social value ¶
3:11 - 3:14
using fewer resources.
3:14 - 3:20
Frugal innovation is not about making do;
it's about making things better.
3:21 - 3:26
Now I want to show you how,
across emerging markets,
3:26 - 3:31
entrepreneurs and companies are adopting 
frugal innovation on a larger scale
3:31 - 3:36
to cost-effectively deliver healthcare
and energy to billions of people
3:36 - 3:40
who may have little income
but very high aspirations.
3:41 - 3:43
Let's first go to China, ¶
3:43 - 3:47
where the country's largest
I.T. service provider, Neusoft,
3:47 - 3:50
has developed a telemedicine solution
3:50 - 3:55
to help doctors in cities
remotely treat old and poor patients
3:55 - 3:57
in Chinese villages.
3:57 - 4:01
This solution is based on
simple-to-use medical devices
4:01 - 4:06
that less qualified health workers
like nurses can use in rural clinics.
4:06 - 4:10
China desperately needs
these frugal medical solutions
4:10 - 4:18
because by 2050 it will be home
to over half a billion senior citizens.
4:18 - 4:21
Now let's go to Kenya, ¶
4:21 - 4:27
a country where half the population
uses M-Pesa, a mobile payment solution.
4:27 - 4:29
This is a great solution
for the African continent
4:29 - 4:33
because 80 percent of Africans
don't have a bank account,
4:33 - 4:38
but what is exciting is that M-Pesa
is now becoming the source
4:38 - 4:43
of other disruptive business models
in sectors like energy.
4:43 - 4:48
Take M-KOPA, the home solar solution
that comes literally in a box
4:48 - 4:53
that has a solar rooftop panel,
three LED lights,
4:53 - 4:57
a solar radio, and a cell phone charger.
4:57 - 5:03
The whole kit, though, costs 200 dollars,
which is too expensive for most Kenyans,
5:03 - 5:09
and this is where mobile telephony
can make the solution more affordable.
5:09 - 5:15
Today, you can buy this kit by making
an initial deposit of just 35 dollars,
5:15 - 5:20
and then pay off the rest by making
a daily micro-payment of 45 cents
5:20 - 5:23
using your mobile phone.
5:23 - 5:28
Once you've made 365 micro-payments,
the system is unlocked,
5:28 - 5:34
and you own the product and you start 
receiving clean, free electricity.
5:34 - 5:36
This is an amazing solution for Kenya,
5:36 - 5:40
where 70 percent of people
live off the grid.
5:41 - 5:44
This shows that with frugal innovation
5:44 - 5:49
what matters is that you take what is
most abundant, mobile connectivity,
5:49 - 5:54
to deal with what is scarce,
which is energy.
5:54 - 5:59
With frugal innovation,
the global South is actually catching up ¶
5:59 - 6:02
and in some cases 
even leap-frogging the North.
6:02 - 6:07
Instead of building expensive hospitals,
China is using telemedicine
6:07 - 6:11
to cost-effectively treat
millions of patients,
6:11 - 6:16
and Africa, instead of building
banks and electricity grids,
6:16 - 6:21
is going straight to mobile payments
and distributed clean energy.
6:21 - 6:28
Frugal innovation is diametrically opposed
to the way we innovate in the North. ¶
6:28 - 6:30
I live in Silicon Valley,
6:30 - 6:33
where we keep chasing
the next big technology thing.
6:33 - 6:38
Think of the iPhone 5, 6, then 7, 8.
6:38 - 6:42
Companies in the West spend
billions of dollars investing in R&D,
6:42 - 6:46
and use tons of natural resources
to create ever more complex products,
6:46 - 6:50
to differentiate their brands
from competition,
6:50 - 6:54
and they charge customers
more money for new features.
6:54 - 7:00
So the conventional business model 
in the West is more for more.
7:01 - 7:07
But sadly, this more for more model
is running out of gas, for three reasons:
7:07 - 7:11
First, a big portion
of customers in the West
7:11 - 7:14
because of the diminishing
purchasing power,
7:14 - 7:17
can no longer afford
these expensive products.
7:17 - 7:22
Second, we are running out of
natural water and oil.
7:22 - 7:26
In California, where I live,
water scarcity is becoming a big problem.
7:26 - 7:28
And third, most importantly,
7:28 - 7:31
because of the growing income disparity
7:31 - 7:34
between the rich 
and the middle class in the West,
7:34 - 7:37
there is a big disconnect
between existing products and services
7:37 - 7:39
and basic needs of customers.
7:39 - 7:41
Do you know that today,
7:41 - 7:46
there are over 70 million Americans
today who are underbanked,
7:46 - 7:49
because existing banking services
7:49 - 7:54
are not designed to address
their basic needs.
7:54 - 7:58
The prolonged economic crisis
in the West is making people think ¶
7:58 - 8:01
that they are about to lose
the high standard of living
8:01 - 8:04
and face deprivation.
8:04 - 8:08
I believe that the only way we can sustain
growth and prosperity in the West
8:08 - 8:12
is if we learn to do more with less.
8:12 - 8:15
The good news is,
that's starting to happen. ¶
8:15 - 8:18
Several Western companies
are now adopting frugal innovation
8:18 - 8:23
to create affordable products
for Western consumers.
8:23 - 8:25
Let me give you two examples.
8:25 - 8:27
When I first saw this building, ¶
8:27 - 8:30
I told myself it's some
kind of postmodern house.
8:30 - 8:35
Actually, it's a small manufacturing plant
set up by Grameen Danone,
8:35 - 8:39
a joint venture between 
Grameen Bank of Muhammad Yunus
8:39 - 8:41
and the food multinational Danone
8:41 - 8:44
to make high-quality yogurt in Bangladesh.
8:44 - 8:48
This factory is 10 percent the size
of existing Danone factories
8:48 - 8:51
and cost much less to build.
8:51 - 8:54
I guess you can call it a low-fat factory.
8:54 - 8:59
Now this factory, unlike Western factories
that are highly automated,
8:59 - 9:05
relies a lot on manual processes in order 
to generate jobs for local communities.
9:05 - 9:08
Danone was so inspired by this model
9:08 - 9:12
that combines economic efficiency
and social sustainability,
9:12 - 9:16
they are planning to roll it out
in other parts of the world as well.
9:16 - 9:18
Now, when you see this example, ¶
9:18 - 9:22
you might be thinking, "Well,
frugal innovation is low tech."
9:22 - 9:24
Actually, no.
9:24 - 9:27
Frugal innovation is also
about making high tech
9:27 - 9:30
more affordable and more
accessible to more people.
9:30 - 9:32
Let me give you an example.
9:32 - 9:35
In China, the R&D engineers
of Siemens Healthcare ¶
9:35 - 9:40
have designed a C.T. scanner
that is easy enough to be used
9:40 - 9:44
by less qualified health workers,
like nurses and technicians.
9:44 - 9:48
This device can scan
more patients on a daily basis,
9:48 - 9:50
and yet consumes less energy,
9:50 - 9:54
which is great for hospitals,
but it's also great for patients
9:54 - 9:58
because it reduces the cost
of treatment by 30 percent
9:58 - 10:02
and radiation dosage by up to 60 percent.
10:02 - 10:06
This solution was initially designed
for the Chinese market,
10:06 - 10:10
but now it's selling like hotcakes
in the U.S. and Europe,
10:10 - 10:15
where hospitals are pressured
to deliver quality care at lower cost.
10:16 - 10:19
But the frugal innovation revolution ¶
10:19 - 10:23
in the West is actually led
by creative entrepreneurs
10:23 - 10:25
who are coming up with amazing solutions
10:25 - 10:28
to address basic needs
in the U.S. and Europe.
10:28 - 10:31
Let me quickly give you
three examples of startups
10:31 - 10:33
that personally inspire me.
10:33 - 10:37
The first one happens to be launched
by my neighbor in Silicon Valley.
10:37 - 10:39
It's called gThrive.
10:39 - 10:42
They make these wireless sensors
designed like plastic rulers
10:42 - 10:45
that farmers can stick
in different parts of the field
10:45 - 10:49
and start collecting detailed
information like soil conditions.
10:49 - 10:54
This dynamic data allows farmers
to optimize use of water energy
10:54 - 10:58
while improving quality
of the products and the yields,
10:58 - 11:03
which is a great solution for California,
which faces major water shortage.
11:03 - 11:05
It pays for itself within one year.
11:05 - 11:09
Second example is Be-Bound,
also in Silicon Valley, ¶
11:09 - 11:12
that enables you
to connect to the Internet
11:12 - 11:17
even in no-bandwidth areas
where there's no wi-fi or 3G or 4G.
11:17 - 11:18
How do they do that?
11:18 - 11:25
They simply use SMS, a basic technology,
but that happens to be the most reliable
11:25 - 11:27
and most widely available
around the world.
11:27 - 11:30
Three billion people today with 
cell phones can't access the Internet.
11:30 - 11:35
This solution can connect them
to the Internet in a frugal way.
11:35 - 11:39
And in France, there is
a startup calle Compte Nickel, ¶
11:39 - 11:41

2
99:59:59,999 --> 99:59:59,999
which is revolutionizing
the banking sector.
11:41 - 11:45
It allows thousands of people
to walk into a Mom and Pop store
11:45 - 11:49
and in just five minutes activate
the service that gives them two products:
11:49 - 11:54
an international bank account number
and an international debit card.
11:54 - 11:58
They charge a flat annual 
maintenance fee of just 20 Euros.
11:58 - 12:01
That means you can do
all banking transactions --
12:01 - 12:03
send and receive money,
pay with your debit card --
12:03 - 12:05
all with no additional charge.
12:05 - 12:09
This is what I call low-cost banking
without the bank.
12:09 - 12:14
Amazingly, 75 percent
of the customers using this service
12:14 - 12:18
are the middle-class French
who can't afford high banking fees.
12:18 - 12:23
Now, I talked about frugal innovation,
initially pioneered in the South, ¶
12:23 - 12:25
now being adopted in the North.
12:25 - 12:27
Ultimately, we would like to see
12:27 - 12:30
developed countries
and developing countries
12:30 - 12:33
come together and co-create
frugal solutions
12:33 - 12:35
that benefit the entire humanity.
12:35 - 12:38
The exciting news is
that's starting to happen.
12:38 - 12:41
Let's go to Nairobi to find that out.
12:41 - 12:44
Nairobi has horrendous traffic jams. ¶
12:44 - 12:47
When I first saw them,
I thought, "Holy cow."
12:47 - 12:52
Literally, because you have to dodge cows
as well when you drive in Nairobi.
12:52 - 12:54
To ease the situation,
12:54 - 13:01
the engineers at the IBM lab in Kenya
are piloting a solution called Megaffic,
13:01 - 13:05
which initially was designed
by the Japanese engineers.
13:05 - 13:10
Unlike in the West, Megaffic
doesn't rely on roadside sensors,
13:10 - 13:13
which are very expensive
to install in Nairobi.
13:13 - 13:16
Instead they process images, traffic data,
13:16 - 13:22
collected from a small number of
low-resolution webcams in Nairobi streets,
13:22 - 13:26
and then they use analytic software
to predict congestion points,
13:26 - 13:30
and they can SMS drivers
alternate routes to take.
13:30 - 13:34
Granted, Megaffic is not
as sexy as self-driving cars,
13:34 - 13:39
but it promises to take Nairobi drivers
from point A to point B
13:39 - 13:43
at least 20 percent faster.
13:43 - 13:49
And earlier this year, UCLA Health
launched its Global Lab for Innovation,
13:49 - 13:54
which seeks to identify frugal healthcare 
solutions anywhere in the world
13:54 - 13:59
that will be at least 20 percent cheaper
than existing solutions in the U.S.
13:59 - 14:02
and yet more effective.
14:02 - 14:06
It also tries to bring together
innovators from North and South
14:06 - 14:11
to cocreate affordable healthcare
solutions for all of humanity.
14:12 - 14:16
I gave tons of examples of frugal
innovators from around the world, ¶
14:16 - 14:20
but the question is, how do you go about
adopting frugal innovation?
14:20 - 14:24
Well, I gleaned out three principles
from frugal innovators around the world
14:24 - 14:26
that I want to share with you
14:26 - 14:28
that you can apply
in your own organization
14:28 - 14:31
to do more with less.
14:31 - 14:35
The first principle is: Keep it simple. ¶
14:35 - 14:38
Don't create solutions
to impress customers.
14:38 - 14:41
Make them easy enough to use
and widely accessible,
14:41 - 14:44
like the C.T. scanner we saw in China.
14:44 - 14:48
Second principle: 
Do not reinvent the wheel. ¶
14:48 - 14:52
Try to leverage existing resources
and assets that are widely available,
14:52 - 14:56
like using mobile telephony
to offer clean energy
14:56 - 15:00
or Mom and Pop stores
to offer banking services.
15:00 - 15:04
Third principle is:
Think and act horizontally. ¶
15:04 - 15:08
Companies tend to scale up vertically
15:08 - 15:11
by centralizing operations
in big factories and warehouses,
15:11 - 15:15
but if you want to be agile and deal
with immense customer diversity,
15:15 - 15:20
you need to scale out horizontally
using a distributed supply chain
15:20 - 15:23
with smaller manufacturing
and distribution units,
15:23 - 15:27
like Grameen Bank has shown.
15:27 - 15:32
The South pioneered frugal innovation
out of sheer necessity. ¶
15:32 - 15:37
The North is now learning to do
more and better with less
15:37 - 15:40
as it faces resource constraints.
15:40 - 15:45
As an Indian-born French national
who lives in the United States,
15:45 - 15:52
my hope is that we transcend
this artificial North-South divide
15:52 - 15:54
so that we can harness
the collective ingenuity
15:54 - 15:56
of innovators from around the world
15:56 - 15:59
to cocreate frugal solutions
15:59 - 16:03
that will improve the quality of life
of everyone in the world,
16:03 - 16:06
while preserving our precious planet.
16:06 - 16:08
Thank you very much. ¶
16:08 - 16:12
(Applause)